Last PAIF barriers removed

Changes to the tax regime for property authorised investment funds (PAIFs) which comes into force today will remove the last barriers to authorised funds converting into PAIFs.

John Cartwright, chief executive of the Association of Real Estate Funds, said: "At a time when people want to improve income from their investment and reduce risk, this regime will really help ordinary investors to diversify their portfolios by adding property to the mix without incurring any tax deductions.

"We fully appreciate HMRC's willingness to engage with the industry to help with the creation of property authorised funds and now look to platforms to update their systems to allow investors to benefit from the new legislation."